AGF and Eaton Vance team up

Toronto-based AGF Management Ltd. and Boston-based Eaton Vance Corp. jointly have launched two new mutual funds in Canada and the U.S. that combine the investment-management and distribution strengths of the two organizations. AGF Floating Rate Income Fund is being offered in Canada by AGF and is subadvised by Eaton Vance Management (EVM), a wholly owned subsidiary of Eaton Vance. Scott Page, head of EVM’s bank loan investment group, and Craig Russ, director of bank loan research with EVM, will manage the fund, which seeks to earn high levels of current income by investing primarily in floating-rate senior loans and other floating-rate debt securities of companies domiciled in the U.S. Advisor commissions are 0%-6% for front-end sales, 5% for deferred sales or 2.5% for the low-load option. Redemption fees begin at 5.5% for the first two years and end at zero after Year 7 for the regular DSC schedule, or begin at 3% in Year 1 and end at zero after Year 3 of the low-load schedule. Trailing commissions are 0.5% for front-end sales; 0.25% for the first seven years of deferred sales, and 0.5% thereafter; and 0.25% for the first three years of low-load sales, and 1% thereafter. Management fees are 1.45% for A-class units and 0.95% for F-class units. Minimum investment is $500. The second fund, Eaton Vance Global Natural Resources Fund, is being offered in the U.S. by Eaton Vance and is subadvised by AGF Investments America Inc., a wholly owned subsidiary of AGF.

(cohara@investmentexecutive.com)